-I have not yet initiated the previously discussed treasury short. I think that will change next week. My target is the 30-year and I am looking for yields to move down to about 3%. At that point, game on.
-The chart for FXY (Japanese Yen proxy) looks heinous. It has now fallen below the long term trend line that I pointed out a little while back. Which begs the question of whether a bounce is due. Regardless, that short trade has the appearance of picking up steam.
-I am always amused when I see economists try to explain the daily noise in the markets. It's noise. Trying to explain it is a fool's errand. Which brings me to a great quote in the most recent quarterly missive from Jeremy Grantham of GMO:
"Ignore especially short-term news: the ebb and flow of economic and political news is irrelevant. Stock values are based on their entire future value of dividends and earnings going out many decades into the future. Shorter-term economic dips have no appreciable long-term effect on individual companies, let alone the broad asset classes that you should concentrate on. Leave those complexities to the professionals, who will on average lose money trying to decipher them."
